Sector News

Danish Crown expands presence in Southeast Asia

October 12, 2017
Food & Drink

As the economic growth continues in Southeast Asia, the Danish Crown group has announced that it will establish a new head office in the region. The new head office will be in Vietnam and from here the sales will spread out through the rest of the region and be supported by two new sales offices in Taiwan and the Philippines. However, the sales office in Singapore will be shutting down.

The meat consumption in the region is growing increasingly, and so the Danish Crown Group considers it the right time to establish separate offices in Southeast Asia. Operating through its ESS-FOOD subsidiary, the Danish Crown Group exports from Denmark and Europe to the countries in South-East Asia.

As of right now, the Philippines is the fifth largest market for European pork. In the past year exports have grown with 15 percent. This increase in exports we see is due to both better opportunities for distributing frozen meats and greater wealth in the country.

“We simply need to be even closer to our customers in Southeast Asia,” Morten Holm, CEO of ESS-FOOD said. “There is increasing interest in meat from Europe, and particularly Danish pork, so it is natural to expand our network of salespeople and agents by establishing our own sales offices. This means better service for our customers on a day-to-day basis, and creates the best possible foundation for boosting sales in the region.”

Lars Albertsen, SVP Export at Danish Crown agrees, explaining how the exports to Vietnam, the Philippines and Taiwan are already strong, but that there is still potential for more. He even stated the possibility of opening an office in Thailand at some point.

The new office in Vietnam will be managed from Ho Chi Minh City and within a few months the office will be supplemented with sales offices in Manila and Taiwan. Sales to Singapore and Thailand will be handled by the Vietnam office.

Previously, ESS-FOOD and Danish Crown operated separately in the region but now the sales force will represent both companies, in line with Danish Crown’s 4WD strategy.

The collaboration between the two makes them a more attractive partner for the customers in the region, Morten Holm believes.

By Eva Eriksen

Source: ScandAsia

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